Why Is ‘Rho’ Considered Less Important than Other Greeks in Short-Term Options Trading?

Rho measures the sensitivity of an option's price to a change in the risk-free interest rate. Since short-term options have a short time until expiration, and interest rates typically do not change significantly over short periods, the impact of Rho on the option's price is usually minimal.

Therefore, for short-term traders, the risks associated with Delta, Gamma, and Vega are far more dominant and critical than the risk associated with Rho.